I didn't claim residency, retirement income or the retirement income exclusion in Georgia - TurboTax determined these items and amounts based on answering a series of questions.
All income is reported as part of the TurboTax dialog for the Federal return. [in my case, W-2 income was earned in Georgia as a nonresident. 1099-R retirement income was received in the state of residence.] The Georgia tax return for part-year and nonresident taxpayers (e.g., Schedule 3) starts with the Federal return data, makes Georgia-specific adjustments, and determines what is taxable, deductible and non-taxable in Georgia.
Georgia uses out-of-state and total income numbers as a basis for prorated part-year / nonresident deductions and exemptions. TurboTax is supposed to follow Georgia instructions for that process.
However, TurboTax has errors in the calculation of Georgia adjustments / basis related to retirement income and the retirement income exclusion.
I hope that helps!
